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FIRST- HALF 2021 SALES UP BY 6.5%
SIGNIFICANT INCREASE IN TOLLING SALES: +16%
Brussels, 28 July 2021 (17.45) - COIL, world leader in aluminium anodising, announces sales of €12.4 million for the first half of 2021, up 6.5% compared to the first half of 2020. The strong recovery in Tolling Sales (+16%), with a particularly dynamic second quarter (+39.6%), offset a slowdown in Package Sales (-18%), impacted by longer delivery times, particularly to Asia. It should be noted that margins on subcontracting activities are much higher than those on Package activities, which include metal.
Sales evolution by quarter and by activity
+ 4,6 %
+ 8,3 %
+ 6,5 %
+ 15,7 %
- 18,2 %
Recovery in Tolling Sales in the second quarter
Tolling Sales (€9.9M) were up 16% in the first half of 2020 and accounted for 79.2% of half-year sales, compared with 72.9% the previous year. After a period of prolonged destocking in the European distribution chain, the Company's sales growth was particularly strong in the second quarter (+39.6%), driven by strong demand in the construction and architectural end markets. This recovery is nevertheless restrained by longer production and delivery times for anodising quality aluminium due to the very high demand from rolling mills in other sectors. Stock levels at metal distributors and rolling mills remain at historically low levels.
A cyclical downturn in Package Sales
Package Sales, whereby the Company supplies continuously anodised aluminium directly to the end customer, decreased by 18% to €2.6M due to a negative base effect and accounted for 20.8% of half-year sales, compared with 27.1% the previous year. Sales in Europe and Russia were strong, while they were impacted in Asia by the Company's difficulty in physically supporting these high growth markets due to the COVID-19 crisis. Regular visits are essential to support the marketing of pre-anodised aluminium and to combat counterfeit products. In addition, lengthy delivery times for aluminium from rolling mills in Europe, as well as a lack of logistical capacity to the Asian market, have made the product less attractive at the moment due to delivery delays.
With a flexible and efficient industrial organisation, COIL has the capacity to favourably support the recovery in demand in its end markets in the second half of the year. The Company is confident in its long-term development prospects and is capitalising on its broad portfolio of premium, sustainable and low carbon footprint products to further strengthen its global leadership.
First half 2021 results and half-year financial report (after close of trading)
COIL is the world's leading anodiser in the building and industrial sectors and trades under the ALOXIDE brand name.
Anodising is an electrochemical process which develops a natural, protective oxide layer on the surface of aluminium and can be coloured in a range of UV-proof finishes. It gives the metal excellent resistance to corrosion and/or reinforces its functional qualities. Anodising preserves all the natural and ecological properties of aluminium; it retains its high rigidity and excellent strength-to-weight ratio, its non-magnetic properties, its exceptional resistance to corrosion. The metal remains totally and repeatedly recyclable through simple re-melting. Anodised aluminium is used in a wide variety of industries and applications: architecture, design, manufacturing and the automotive sector.
COIL deploys an industrial model that creates value by leveraging its unique know-how, its operational excellence, the quality of its investments and the expertise of its people. COIL has around 130 employees in Belgium and Germany and generated a turnover of around €30 million in 2019.
Listed on Euronext Growth Paris | Isin: BE0160342011 | Reuters: ALCOI.PA | Bloomberg: ALCOI: FP
For more information, please visit www.coil.be
1 Anodising and metal included